Trading / Investing

Is Your Trading System A Loose Cannon?

2 Min Read

Can you imagine having a gun without a sight on it? It wouldn’t be very effective for accuracy would it? Sometimes by luck, you might hit the bulls-eye on a target and think the gun is great, but the majority of the time your aim will be off the mark.I see so many traders doing the equivalent of this with their trading strategy. They tell me how great their strategy is and the ‘big picture’ rules but no mention of micro-strategy.

“I trade trends, so I look at moving average crossovers to identify when the trend has changed, along with MACD, RSI and Stochastics being overbought.”

Please shoot me.The above example is the typical response I get - more variables/indicators that are showing the exact same thing, does not necessarily mean more accuracy. Also, there is no micro-strategy here and therefore the strategy is too broad.You may be using a similar strategy at the moment and think it works well. Over the long term it won’t - feel free to argue with me over email, you will lose! I have seen these fail time and time again.

me shooting
My Dan Bilzerian moment in Nashville, USa few years ago. My verdict: not my cup of tea!

To gain accuracy you need a micro-strategy. Remember it’s about the small things we do correctly that lead to greatness. Well that’s why I’m going to teach you the building blocks to become a sniper in the market.These things are basic, but important - and guess what….The majority of traders get them wrong!Some traders haven’t even put 2 and 2 together to realise that these micro strategies even exist. I have read many books and plenty of articles online, including discussions on price action, but hardly ever read the most basic building blocks for trading significant levels.